Regarding estate tax...
First of all, yes CGT is different than estate tax. However, death doesn't just trigger CGT - RSPs/RIFs are also unwound and completely taxed as income. All tax deferrals are realized and taxed. In other words, it is a complete reckoning, and even though there is no official estate tax, there is plenty of tax at death.
Having said that, I would be fine with an additional estate tax above a certain threshold ($10M would be the sensible number, IMO). However, if you implement an estate tax, people will simply shelter their assets. Yes, you need to establish a gift tax along with the estate tax, however, that doesn't really solve anything. All a family needs to do is keep their assets in a trust because the trust never dies and therefore never faces the estate tax. (yes, trusts have a 21 year shelf-life, however, you can role into a new trust)
When you weigh it all, the best system is what we have: make death a deemed disposition, where all taxes deferrals come due. It is effective because it doesn't scare wealth away.
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